They say timing is everything, and nowhere is that phrase truer than in the world of small business — especially when it comes to business financing. If you’re relying on some type of funding to get your business off the ground, your opening date is completely dependent on when you’re able to secure start-up capital. So before you commit to a deadline, make sure your expectations are realistic by understanding the small business financing timeline: (more…)
People become entrepreneurs for a variety of reasons- they can’t stand the corporate lifestyle, they want to become the master of their own destiny, or they’ve had a dream of opening a business for as long as they can remember. People stay entrepreneurs because they love what they do.
In celebration of Valentine’s Day, we want to see all the ways you love your business. And we’re giving away $500 to one lucky winner through our “#ILoveMyBusiness” photo contest!
Entering is simple. Submit a photo showcasing why you love your business to firstname.lastname@example.org along with a description of what’s going on in the photo in 25 words or less, the name of your business, and your company URL. The more creative the photo is, the better – we really want to see the love in the photo!
Deadline for submissions is February 29th, and the winner will be emailed March 1st, so start snapping photos now to enter in! Limit one picture per entry applicant. For more information on the contest, rules, and additional questions, visit our website at contest.mycorporation.com.
Good luck, entrepreneurs! We’re excited to see all the ways you love your business!
If your goal for 2014 is to become a business owner, you’re most likely being inundated with advice and tips. Maybe so much that sifting through it and evaluating who you can trust is eating up time that would be better spent putting the wheels in motion for your new venture. In the interest of saving you time and aggravation, I’ve broken down the five most important things you should know about getting the funds squared away for your business:
1) Pre-empt your lender’s doubts.
If you’re seeking a loan to purchase a franchise, your bank may be well-versed in franchising—or not. Assume they will need convincing about the franchise and do their homework for them: a risk evaluation using banking terminology and analyzing standard underwriting topics. A FRANdata bank credit report in hand will smooth your path with lenders.
2) Get your financial records in shape.
That means get them together in one place in a condition that makes it clear that you are trustworthy, keep meticulous records and are a serious professional. The bank is going to want to see:
- Personal and business credit history
- Personal and business financial statements for existing and startup businesses and as well as a projected financial statements
- A strong, detailed business plan (including personal information such as bios, education, etc.)
- Cash flow projections for at least a year
3) Realize that your payment history is important.
There’s no question that your credit score is important, but banks will also look at your back payment history. If it concerns them, it could dilute the weight given even a strong credit score.
4) Make sure your resume reflects your business acumen.
Even if you’ve never owned a business before, highlight the experience you do have to show lenders that you have knowledge of the space you’re entering, that you finish what you start, that you have membership in organizations that are relevant to your new business.
5) Keep calm and carry on.
It’s become an internet meme, but it’s relevant here. Be patient and move forward with plans as best you can while awaiting a decision from the lender. If you get a ‘no,’ move on. Successful business owners know that it’s all about the long game.
Of course there are alternative ways to fund a business. If you’ve got a 401(k), there is a rather complex, but completely legal way to use the retirement account to purchase a business—without incurring any debt.
David Nilssen is the CEO & Co-Founder of Guidant Financial. Read more tips about becoming a successful entrepreneur in his book, Making the Jump into Small Business Ownership. He can be found on Twitter at @DavidNilssen.
The New Year is the time when would-be entrepreneurs spring into action to get their companies started. One important piece of the entrepreneurial puzzle is getting funding for your business. As an entrepreneur, you face a challenging road, and one of the biggest challenges is finding a way to fund your company.
In the current economic environment, getting financing for a startup is very difficult. Many entrepreneurs go about this process the wrong way. They often have unrealistic expectations and think that getting funding will be quick and easy. Because of this, they go unprepared. Furthermore, they often pursue the wrong sources . For example, pursuing an angel investment won’t help you unless you are in a high growth industry. And, without collateral, most banks won’t give you a business loan regardless of how good your business plan is.
Because of this, more often than not they don’t get funded and their business fails. I know because I see this every day, but it doesn’t have to be this way. It’s a matter of reviewing your options and pursuing those with the greatest chance of success.
Before we review the list of financing options, I’d like to take a minute to dispel a common myth. Many entrepreneurs believe that only good ideas get funding. This is not true. Results get funding. And by “results,” I mean that the entrepreneur has already built a proof-of-concept business that is running at a small scale and producing results. Those businesses have a much greater chance of getting funded. Keep this point in mind as you seek financing.
One of the biggest challenges for young entrepreneurs when they are trying to start up a business is of course securing sufficient funding. The most common hurdle is the fact that they have not yet managed to build up a good credit rating. Let’s take a look at some of the ways to get ahead despite a poor credit rating.
A credit score is fairly important when it comes to raising finances for your business, the higher the score the easier it will be to get loan or some other form of financing. However, it is not the be all and end all – you can still get funding with bad credit. The key is choosing appropriately so that you can begin to build up your credit so that when the time comes to move to the next level your business will have sufficient credit to do so.
Do Not Depend On Credit Cards & Bank Loans
It has recently been suggested that only 25 percent of entrepreneurs use traditional credit cards and bank loans to meet their start-up costs. That is actually great news for those seeking funding as it means that the majority of entrepreneurs are getting money from sources that are not so dependent on credit scoring. There are plenty of ways to fund a start-up which do not involve taking out a bank loan.